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FSA - talking the same language

Following MGI (the recent mortgage and GI regulations), the FSA are busy setting out the rules for electronic reporting

What is the FSA up to in 2005?

Among other things, they’re busy working out how to cope with the mountain of regulatory reporting they will be getting from 40,000+ companies following the new mortgage and general insurance regulations.

So what are they doing about it?

They’re asking companies to report electronically, so they can analyse the reports automatically.

FSA have specified:

what to report: a new integrated structure, to better fit what FIs do how to report: electronically: either by web-interface or system-to-system, using XBRL And the timetable: phase 1 for electronic reporting is July 2005.

What’s XBRL…

XBRL stands for eXtensible Business Reporting Language and is the emerging standard for electronic reporting. It allows organisations to exchange financial reporting information electronically, saving printing and rekeying.

The FSA originally planned to have XBRL ready for the start of electronic reporting. However, these plans have now been put back, and it looks like the XBRL interface will not now be ready before 2006 at the earliest.

So, what does this mean for you?

Electronic reporting will be mandatory from July 2005 for mortgage, general insurance and retail investments, and complaints reporting (covering data collected from April 2005). Firms will have to report via the web interface provided by the FSA.

XBRL has been postponed for now. The FSA has not yet released its XBRL interface, nor said when it will be available.

When they do, firms will need to co-ordinate their system changes to avoid duplication.

Where can I find out more?

For FSA’s mandatory electronic reporting, visit: http://www.fsa.gov.uk/pages/Doing/ Regulated/Returns/index.shtml.

XBRL is promoted internationally via a consortium of approximately 250 companies and agencies. For more details, visit http://www.xbrl.org.

Chaucer Consulting has helped a number of firms manage their regulatory programmes, to ensure the right response and avoid overkill.